Читать книгу: «Investing in cryptocurrency»
INTRODUCTION
There are over 5,5 thousand of different cryptocurrencies and this number is only increasing every day. For new investors and traders, the choice of cryptocurrencies in which to invest their own funds is becoming more and more difficult, since it is necessary to analyze a lot of factors that affect the value of a particular cryptocurrency. Consequently, the risks of investment and capital loss multiply. To become a successful investor or trader, you need to create a diverse portfolio of coins that you can easily manage, but it is a difficult task to do.
The cryptocurrency market offers a lot of investment opportunities. The main challenge is to miss out on as few investment opportunities as possible. You must manage to read hundreds of news from various media every day, and you need to keep track of different topics depending on your preferences. Constantly monitor ICO, STO, IEO entering the market. Constantly monitor the prices of different cryptocurrencies in an extremely volatile market. If you are involved in an Airdrop find a project that tracks the loudest ones.
The cryptocurrency market is changing at lightning speed. You must have timely access to the most important information for a better investment.
RESOURCES
Hello. If you are interested in cryptocurrency, or if you are looking for promising cryptocurrency projects, or are a versatile investor, you must have high-quality resources to build your portfolio, track it, search for new projects, track the main news of the cryptocurrency world. Today I want to talk about the most popular resources that everyone who is interested in the world of cryptocurrencies should know.
One of the most important and sought after platforms is coinmarketcap. Coinmarketcap (Crypto-Currency Market Capitalization) is a service that allows you to monitor the capitalization of almost every cryptocurrency that exists today. With its help, on charts you can monitor the dynamics and trading volumes of any of the monitored cryptocurrencies for a different period of time. Most importantly, the service provides access to many more interesting features:
Rankings:
1. You can view recently added tokens.
2. Biggest Gainers and Losers tokens – that is, those tokens that have grown most in price per day and vice versa.
3. Derivatives.
4. Top DeFi Tokens by Market Capitalization.
Tools:
1. Cryptocurrency Converter Calculator, you can convert fiat money to any cryptocurrency.
2. Add your favorite coins and tokens to your watch list, you can track your favorite coins and tokens.
3. You can view historical snapshots.
CoinMarketCap Blog is a cryptocurrency blog that publishes news, market analysis, tips and guides. I think this should be interesting for many users.
Resources for tracking global cryptocurrency news:
CoinDesk is a media platform for the next generation of investors to explore how cryptocurrencies and digital assets contribute to the development of the global financial system. Its mission is to inform, educate and connect the global investment community through news, data, events and education. Founded in May 2013, CoinDesk attracts millions of people interested in digital assets and blockchain technology.
NEIRONIX is an analytical multi-factor scoring platform for ICO projects, which performs multivariate analysis of a large amount of data using new mathematical methods. The platform is intended for analysis and subsequent effective risk management of investments in projects with a high degree of uncertainty. The mission of Neironix is to provide private and institutional investors with the necessary analytical data and effective decision-making tools.
PRO BLOCKCHAIN a diversified company with partners all over the world. It has been operating since 2016 and this company, in my opinion, is one of the most promising in the CIS countries. The company cooperates with large projects in the field of cryptocurrencies.
BLOCK CRYPTO – The Block is a leading research, analytical and news brand in the field of digital assets. The Block team, founded in 2018 in New York, operates in 7 time zones, covering the global cryptocurrency and the 24/7 blockchain space.
CNBC – A major global media outlet that publishes news of the cryptocurrency market, including:
Medium – A platform for social journalism, the service was launched in August 2012 by Twitter co-founders Evan Williams and Biz Stone. Now a lot of famous authors and publicists exhibit their works there, including the prospects of the cryptocurrency market and promising projects.
Also a very important resource is You Tube. Here, in my opinion, you should pay attention to the number of subscribers on the channel, and also if you follow the forecasts made by the channel’s experts, you should compare them with the real situation of the cryptocurrency industry.
Russian – language channels:
Трейдер Анатолий Радченко. Here you will learn how to correctly approach trading on the stock exchange!
Alexander Gerchik. If you want to trade, learn from the best. A. Gerchik has been heading an investment fund for more than 10 years.
If you are tracking new and promising ICO projects, you should definitely look at the information on various ICO trackers. There you will find everything you need – expert assessments of a project, project activity on your social networks, documents that are a part of the project team, the project roadmap, tokenomics.
Bitcointalk is an important resource for communication with other users on the topic of cryptocurrencies.
Bitcointalk is an online forum dedicated to discussing bitcoins, blockchain technology and cryptocurrencies.
Cryptocurrency statistics:
Bitinfocharts – the most complete statistics on a single cryptocurrency.
Nomics – Nomics an API-first cryptoasset data company delivering professional-grade market data APIs to institutional crypto investors and exchanges. Project offer products and services that allow funds, fintech apps, and exchanges to access clean, normalized and gapless primary source trade and order book data.
All updates to cryptocurrency projects, when it comes out, what updates, conferences, hard forks will take place. An irreplaceable site when investing in certain coins and tokens:
CoinMarketCal is the leading economic calendar for reliable cryptocurrency news. It covers all events that help crypto traders make better decisions.
CoinGecko provides a fundamental analysis of the crypto market. In addition to tracking price, volume and market capitalization, CoinGecko tracks community growth, open-source code development, major events and on-chain metrics.
Our objective is to elevate crypto participants’ understanding of fundamental factors that drive the market. CoinGecko is one of the largest and earliest crypto data aggregators, operating since early 2014. It currently tracks nearly 7613 tokens from more than 423 cryptocurrency exchanges.
Trade:
Simple and intuitive for beginners, and powerful enough for advanced charts – TradingView has all the tools for building charts that are needed to exchange and view trading ideas. Real-time data and browser-based graphics allow you to conduct research from anywhere in the world, as there are no settings or complex settings. Just open TradingView in any modern browser and start building charts, learn and share ideas!
Get better at trading and investing by seeing what others are doing. Browse published ideas and click Play to see how historical forecasts actually played out. Publish trading ideas to your TradingView profile and push them out to Twitter, your blog, or any other place on the web. Start making your name in the trading community and get discovered by trading firms! Start sharing your ideas today! Criticize and argue, comment and add important details, be active! Together, all these interactions make up the precious nuggets of knowledge that can be used by various traders all over the world.
Overview of cryptocurrencies, their rating:
If you are an investor you need a full analysis of projects. This will help you:
Info.binance – An altcoin trader’s Handbook. The reports comprise of extensive metric analysis, a dissection of the project’s community and its developmental progress, and its technical soundness, culminating in a final grading.
Altcointradershandbook – here you can find an overview of the cryptocurrency market, as well as reports on some coins and tokens.
Research.binance – binance Research provides institutional-grade analysis, in-depth insights, and unbiased information to all participants in the digital asset industry.
Cryptocurrency funds:
Cryptofundresearch – Crypto Fund Research is the main resource for timely data and market analysis of crypto hedge funds and venture capital.
Neironix – fund tracking.
500.co – 500 Startups is the most active global venture capital firm. The project seeks to support the world’s most talented entrepreneurs and create prosperous ecosystems around the world. The project has supported more than 2,400 companies or more than 5,000 entrepreneurs in more than 75 countries.
Republic – the financial portal and brokerage dealer are registered with the SEC and are members of FINRA, and if you are interested in startups, you’ve heard about Republic. Republic is part of a family of startup platforms along with AngelList and Product Hunt, one of the most trusted online startup ecosystems in the world. The project was launched in 2016 and did not stop there. A little over a year ago, they created Republic Crypto. Project has gained a reputation as an industry leader in regulated crowdfunding space and we continue to innovate on the democratization of start-up fundraising and investments.
Applications:
Blockfolio – The world’s most popular Bitcoin & cryptocurrency portfolio tracker. It’s 100% free. Now with Blockfolio Signal, a first-of-its kind communications platform for receiving updates directly from team leaders of the tokens you care about.
Coinstats – Setup and track your portfolio manually or by syncing your wallets or exchanges.
Cryptocompare – CryptoCompare is a central authority for clear and concise information, offering unrivalled breadth, scope and depth of data, bridging the gap between the crypto asset and traditional financial markets. Founded in 2014, CryptoCompare is a global cryptocurrency market data provider, giving institutional and retail investors access to real-time, high-quality, reliable market and pricing data on 5,300+ coins and 240,000+ currency pairs. By aggregating and analysing tick data from globally recognised exchanges, and seamlessly integrating different datasets in the cryptocurrency price, CryptoCompare provides a comprehensive, holistic overview of the market. At a granular level, we produce: cryptocurrency trade data, order book data, blockchain and historical data, social data, reports and a suite of cryptocurrency indices.
BOUNTY AND AIRDROP
You must understand that I am writing an article after the market has been bearish for 1.5 years. This is important because it is possible that when the cryptocurrency market begins to grow rapidly, almost all ICOs, IEOs, STOs will raise the necessary funds for the development of the project. Accordingly, it will be possible to earn much more money, since projects will conduct ICOs faster (IEO, STO) and go to exchanges.
Airdrops are various programs where you receive a certain number of tokens of any cryptocurrency project for performing certain simple actions on your social networks: subscribe to their page, like, write comments.
Bounty programs – a more extended reward: you can write articles, shoot videos about the project, produce larger programs on your Twitter and Facebook, Instagram account.
Based on personal experience, it should be noted that most likely from 60 to 80% of the airdrop projects that you have completed will not be paid to you. Since some projects do not enter the market, others did not collect the necessary amount in the process of attracting funds from the primary ICO, some projects require certain commissions to be paid for the transfer of their tokens.
Let us dwell in more detail: often these commissions are the same as if you just bought their tokens for this amount – that is, these amounts are comparable to the size of the airdrop itself.
Also often these airdrop discussions go on in a telegram channel and although you register your mail as well, most likely you will not receive an e-mail that you need to transfer a commission, so if you participate in a large number of airdrops, it’s very difficult to keep track of it or you’ll have to sit all day in telegram channels.
It is worth noting that airdrops, which hold large exchanges that have been on the market for several years, are almost always paid, but often this requires a complete identity check. The same applies to just an airdrop project – where you go through a full identity check, the chance of getting an airdrop is much higher. You should keep in mind that these projects may not ensure the safety of your data, since the projects are small, so there is little money allocated for network security.
Pay special attention to the airdrop and Bounty channels which lead different groups to telegrams and make announcements of all airdrop and Bounty. You should have the opportunity to contact the group administrator and ask a question why this or that fee was not paid and at what stage the project, when there will be a distribution of coins. If these channels determine and distribute remuneration, then the probability of payment is much higher compared to those who simply send links to new airdrops.
This is especially important if you are doing Bounty assignments, as it sometimes takes quite a lot of effort: writing an article or when you shoot your video about a project. Especially, if you do it completely yourself, and not just copy information from the project site.
Never give any group administrators or mail your private wallet keys, always provide only your wallet address.
If you yourself are looking for a Bounty task in Bitcointalk, then always check these pages, since they may not be presented from the project at all, so no one will transfer any rewards to you.
You can follow the link to the site and ask the site administrator a question: is this Bounty really carried out by their project, only then proceed with the implementation of Bounty.
Sometimes airdrops appear for referrals. You can participate in them, but if you do not attract referrals, you will not receive a reward, so you can only support the person or community that provides you with new Bounty and Airdrop.
You should also understand that the time from the start of Bounty and Airdrop to the payment of rewards can be significantly different from each other. That is, a fee can be transferred to you both within 1 week and within one year – it depends on whether the project is successful or not, the situation on the cryptocurrency market and other factors.
When Swap tokens pass, the project writes about this mainly in a telegram channel or on its website. Again, if you participate in many cryptocurrency projects, tracking it is almost impossible. Therefore, you will not sell your tokens already received.
Another important point is when the token or coin goes on the exchange often after the start of trading, especially in today’s cryptocurrency market, the price of the token drops sharply, respectively, if you were counting on receiving $ 5—10 from Airdrop and missed the moment the token was released on the exchange, you can sell its only a few cents.
When you participate in competitions you must understand that you accept the rules of the project. Then, when the project team evaluates all the work, you may not agree with the results of the tender conditions, but you will not receive a reward.
As a result, today:
You get 20—40% of all Bounty and Airdrop you completed.
You can earn up to 20—30 dollars a month if you participate in a large number of Bounty and Airdrop and do not pass KYC
You can earn up to 50 – 100 dollars per month if you participate in a large number of Bounty and Airdrop and pass KYC
You can earn up to 200 – 300 dollars a month if you participate in a large number of Bounty and Airdrop and attract referrals.
Another important point is that it is possible if the market grows, some projects will still list remuneration.
I’ve got such numbers here, if you get other results, write in the comments the names of the Bounty and Airdrop groups that select projects with high quality and provide good user support. Also write if you manage to earn more or less, your opinion is interesting.
You also have the opportunity to participate in trading contests of exchanges. Exchanges hold various contests with different cryptocurrency pairs. In my opinion, this is a very interesting direction, especially on not very liquid exchanges, where there are not many professional traders.
Also, exchanges sometimes hold Airdrop for holders of certain tokens on exchange wallets, that is, you can simply store a certain token in your wallets and on a certain date you will receive similar tokens or tokens of another project.
Another opportunity to get a certain amount of cryptocurrency for free is participation in contests that conduct cryptocurrency projects on their social networks. Therefore, subscribe to social networks of serious cryptocurrency projects and participate in the life of the project.
INVESTMENT PROGRAMS OF EXCHANGES AND WALLETS
You just buy cryptocurrency and put it in storage on the stock exchange or wallet, for this you get a certain percentage per annum (different depending on the token). Here you should understand that for major cryptocurrencies this is a small percentage of 5—15% on average on all platforms, and with market volatility, you may well not get any profit in a short time period. Also, your assets are located on third – party platforms, and not on your personal wallets.
The main attraction of staking for crypto investors is the ability to receive passive income. Users can receive a reward for the obtained blocks without receiving the status of a validator. The specific percentage of profit from staking depends on the coin and the validator site.
Today, all popular exchanges offer staking: Binance, Coinbase, Huobi, OKEX. It is beneficial for both exchanges and crypto-investors: both parties earn money. At the same time, PoS projects have long been known on the market and have already proven their worth when used in a number of coins, and exchanges can offer their users more liquidity than pools. Now a very large amount of user funds is stored on exchange wallets just like that, without bringing any income to either users or the exchange itself. During flat periods, the number of active users trading decreases, while altcoins trading are generally negligible. With staking, exchanges are able to safely use these funds in the interests of the user, while receiving a percentage for this and additionally participating in increasing the stability of the network.
If you consider the Atomic wallet investment program, you can put the following coins in Stake:
Purchase and storage of exchange tokens. In this direction, there are exchanges that distribute part of their profits between holders of the exchange token on your accounts. Accordingly, the more exchange tokens on the balance sheet you have, the more funds you receive when distributing profit on the exchange. But you must understand that for a good profit you must buy a large number of exchange tokens, and therefore you invest most of your funds in one financial instrument.
MASTERNODES
In fact, the term hides servers with a certain number of blocked coins. They are constantly online and sign blocks. The reward is rewarded in the coins of the network. Creating a masternode is an expensive process that is not accessible to every investor. Everyone who wants to set up a masternode must go through a kind of financial selection – to buy a large number of cryptocurrencies. The amount determined by the rules of the network is frozen on the wallet of the owner of the masternode.
It is worth noting that the freezing of a significant amount of funds in little-known cryptocurrencies can cause serious losses, primarily due to the volatility of the cryptocurrency market, and secondly, low liquidity when selling, that is, it can be traded on an exchange with a trading volume of $ 10 (at an acceptable price to you price).
Analyze information on bitcointalk and other cryptocurrency forums in order to know how the project is developing. Or you will be engaged not in investments, but in the game of roulette.
Since the rate of most cryptocurrencies can change by hundreds of percent during the year, it is almost impossible to calculate the future yield of the masternode in dollars. Investors can only focus on the current profit paid to the owners of the main nodes in various cryptocurrencies.
Regardless of the selected cryptocurrency, setting up a masternode is reduced to sequentially performing 3 steps:
Configuring software for the masternode to work on a remote server.
Buying a sufficient amount of cryptocurrency and sending it to your own wallet tied to a masternode.
Start masternode.
Reliable requirements are placed on the reliability of masternodes: the server must be available 24/7, only insignificant periods of disconnection from the network are allowed (several hours a year). A node needs a dedicated IP address to operate. The speed of the Internet connection should be constant, without significant drawdowns.
Ensuring the fulfillment of these conditions in your home or apartment is quite difficult. The user will need to connect a dedicated IP, constantly keep ready a backup communication channel and provide uninterrupted power to the computer in case of a power outage. In practice, it is much simpler and cheaper to rent a virtual server (VPS) or use the services of specialized hosting services that offer their help in setting up a masternode.
The unpredictability of the cryptocurrency rate is the main danger in creating a masternode. A prolonged market downturn can significantly increase the payback period. The popularity of the currency also affects the profitability of the masternode: the more transactions go through the blockchain, the higher the reward for the owner of the node.
When choosing a masternode, you should pay attention to the following parameters:
1. How long a project is on the market – the more the better. Coins that were created less than a year ago should be treated with caution, however, they just provide the opportunity to receive super-profits.
2. Capitalization – the higher the better.
3. ROI – return on investment. This term defines the return on investment for a certain period of time. It is better to calculate it yourself, since monitoring services try to impress investors and calculate it for short periods of time, including one day, which does not make sense at all.
4. The dynamics of changes in the price of coins. The yield of a masternode may have little or no effect on the outcome of an investment if the price of a coin changes regularly and exhibits an unclear long-term trend. Be sure to analyze the behavior of the value of the coin over the past few months. It is desirable that it be stable and change in accordance with the behavior of Bitcoin. In addition, the changes should be smooth.
5. Developers Examine the team representatives and their past achievements. It is desirable that the developers already had some kind of worthwhile product. At a minimum, they should not be implicated in all kinds of scam schemes – this will partially exclude the possibility of manipulating coin prices or the banal disappearance of the project.
Masternodes.pro
Masternodes.online
MNO is a masternode coin monitoring and stats service. MNO does not research or recommend any coin. Do your own research and invest at your own risk. ROI changes often and is not the most important factor. Please consider Dev Team – Community – PURPOSE/Platform – Liquidity – Wallet when making masternode purchases.
Masternodes.online uses the CoinGecko API and selected verified exchanges for ALL price, volume and marketcap numbers for validation. The only exceptions are ICOs and newly listed coins that have not yet been listed on CoinGecko or on verified exchanges.
ICO, IEO, STO
ICO, Initial coin offering – a form of attracting investments in the form of selling to investors a fixed number of new units of cryptocurrencies.
The primary exchange offer, IEO is a variant of ICOs managed directly by cryptocurrency exchanges.
In the ICO, investors buy tokens in order to benefit from an increase in the value of the asset, or to access the platform services.
In STO, investors invest their money in order to receive dividends, an influx of finance or a voting right that is directly tied to a security.
Choosing a project for investment:
1. Field of activity – choose the most promising sectors of the economy, which in the near future can make a qualitative leap in their development.
2. White paper of the project – read how the project lives, how well the document is prepared, what goals the project sets for itself, marketing digging.
3. Presentation – is it clear to you, what is new and interesting, creative the project offers, what are the bonuses and advantages in comparison with other projects?
4. The roadmap of the project – how it is being carried out: ahead of schedule or there are delays in the implementation of certain tasks and goals.
5. Social networks (audience size, project activity) – project news, advertising, attracting new users to the platform (audience growth), contests, in which the development of the project is manifested.
6. Team (developer profiles) – are there profiles on social networks, in which large companies the project team members worked, what successes they achieved, are they able to enter into large partnerships with the existing business.
7. Advisers – who are these people, are they really professional programmers and investors with a long work experience and the ability to assess the attractiveness and novelty of new projects?
8. Ratings of ICO project trackers – see how other people evaluate the project.
9. Difference from competitors – what is the novelty of the project, what new technologies can be introduced on its basis, how the project will bypass its direct competitors.
10. Institutional investors – how many large cryptocurrency funds have invested in this project, and in what amount.
11. The economy of tokens (general release, distribution) – how many tokens will remain with the project team, will they subsequently be able to manipulate the price of the token on the exchanges, or are they interested in having as many people as possible buy their tokens and keep them in their wallets.
12. Soft Cap and Hard Cap – how much the project plans to collect within the ICO, IEO or STO, the terms of token sale, is there any information that reflects the amount of funds raised in real time.
13. Github smart contract – whether a smart contract is exposed, how often the update takes place.
14. Discounts for pre-sale – what they are, if too large – perhaps the project does not pursue the goal of high-quality development, but manipulates the opinion of investors in order to simply collect as much money as possible within the ICO.
NON – STANDARD APPROACH TO INVESTMENTS
1. Purchase of tokens and coins of projects that conducted ICOs in 2016 – 2019, and which are currently traded with low trading volume and low ROI. It should be borne in mind that projects should be selected as follows:
• Attracting a large amount of funds in the ICO process,
• Projects should be included in the TOP ratings of ICO trackers, which are published annually.
• An excellent team should be behind the projects and the project should constantly develop: conduct marketing companies, be active in social networks, conclude cooperation agreements with existing companies not only in the cryptocurrency market.
Also make choices based on a combination of factors:
1. Field of activity
2. White paper of the project
3. Presentation
4. Project roadmap
5. Social network (audience size, project activity)
6. Team (developer profiles)
7. Advisers
8. Uniqueness
9. Difference from competitors
10. The presence of institutional investors, or cooperation with promising companies that are already on the market.
11. Token economics (total issue, distribution).
https://coinmarketcap.com/currencies/kin/
https://coinmarketcap.com/currencies/gifto/
https://coinmarketcap.com/currencies/eos/
https://coinmarketcap.com/currencies/hdac/
https://coinmarketcap.com/currencies/tezos/
https://coinmarketcap.com/currencies/sirin-labs-token/
https://coinmarketcap.com/currencies/bancor/
https://coinmarketcap.com/currencies/polkadot-iou/
https://coinmarketcap.com/currencies/orbis-token/
https://coinmarketcap.com/currencies/orbis-token/
https://coinmarketcap.com/currencies/hedera-hashgraph/
https://coinmarketcap.com/currencies/quantstamp/
https://coinmarketcap.com/currencies/videocoin/
https://coinmarketcap.com/currencies/sentinel-protocol/
https://coinmarketcap.com/currencies/sense/
https://coinmarketcap.com/currencies/polyswarm/
https://coinmarketcap.com/currencies/orbs/
https://coinmarketcap.com/currencies/tenx/
https://coinmarketcap.com/currencies/domraider/
https://coinmarketcap.com/currencies/funfair/
https://coinmarketcap.com/currencies/patron/
https://coinmarketcap.com/currencies/dragon-coins/
https://coinmarketcap.com/currencies/wax/
https://coinmarketcap.com/currencies/mobilego/
https://coinmarketcap.com/currencies/singularitynet/
https://coinmarketcap.com/currencies/refereum/
https://coinmarketcap.com/currencies/envion/
https://coinmarketcap.com/currencies/olympus-labs/
https://coinmarketcap.com/currencies/qash/
https://coinmarketcap.com/currencies/datawallet/
https://coinmarketcap.com/currencies/ocean-protocol/
https://coinmarketcap.com/currencies/zen-protocol/
https://coinmarketcap.com/currencies/bankera/
https://coinmarketcap.com/currencies/bankex/
https://coinmarketcap.com/currencies/salt/
https://coinmarketcap.com/currencies/nexo/
https://coinmarketcap.com/currencies/quant/
https://coinmarketcap.com/currencies/iotex/
https://coinmarketcap.com/currencies/digitex-futures/
https://coinmarketcap.com/currencies/quarkchain/
https://coinmarketcap.com/currencies/ontology/
https://coinmarketcap.com/currencies/holo/
https://coinmarketcap.com/currencies/zilliqa/
https://coinmarketcap.com/currencies/odem/
2. Buying tokens, which now have a low ROI on the Coinmarketcap radar, but are included in the TOP 250 and have a large user base.
On the website https://coincheckup.com you can track exchange rates depending on their maximum values, or configure a filter and watch ROI.
3. Investing in PoS tokens that are traded with a low trading volume. Also, the project should already prove itself. Pay attention to what kind of team is behind the project, what kind of investment plan they offer for mining or setting up a masternode.
Coincheckup – You can configure filters of Pos tokens or any others of your choice.
Stakingrewards – Staking Rewards is the leading data provider for staking and crypto-growth tools. We are currently tracking 111 yield-bearing assets with an average reward rate of 14.93% and 284 qualified providers.
4. Search for top coins or tokens that are traded on low-liquid exchanges with a low trading volume and a small number of buy orders with a large price step down. You place pending buy or sell orders per squeeze.
5. Investing in coins or tokens that have attracted large investment funds to purchase their cryptocurrency. Of course, the more funds the better.
Cryptofundresearch – Crypto Fund Research is the main resource for timely data and market analysis of crypto hedge funds and venture capital.
I want to structure information about which cryptocurrencies large funds invest in. Based on this information, it can be concluded which cryptocurrencies are the most promising, as they already have a good financial base for their development. Also, these funds before investing conduct a thorough selection of projects for many factors.
Dcg.co/portfolio/
BITFLYER https://bitflyer.com/en-jp/
BITGO https://www.bitgo.com/
BRAVE https://brave.com/
CIRCLE https://www.circle.com/en/
CIVIC https://www.civic.com/
COINBASE https://www.coinbase.com/
DECENT https://www.decent.com/
DECENTRALAND https://decentraland.org/
HORIZEN LABS https://horizenlabs.io/
HEDERA HASHGRAPH https://www.hedera.com/
RESERVE https://reserve.org/
RIPPLE https://ripple.com/
SHAPESHIFT https://shapeshift.io/
TIERION https://tierion.com/
XAPO https://xapo.com/en
ZCASH https://z.cash/
2. Blockchain.capital/portfolio/
BITGO https://www.bitgo.com/
CIRCLE https://www.circle.com/en/
CIVIC https://www.civic.com/
COINBASE https://www.coinbase.com/
DECRED https://decred.org/
Dfinity https://dfinity.org/
Energy Web Token https://www.energyweb.org/
Filecoin https://filecoin.io/
Powerledger https://www.powerledger.io/
RIPPLE https://ripple.com/
SHAPESHIFT https://shapeshift.io/
XAPO https://xapo.com/en
3. A16z.com/portfolio/#crypto
COINBASE https://www.coinbase.com/
Cryptokitties https://www.cryptokitties.co/
Filecoin https://filecoin.io/
Maker https://makerdao.com/
Libra https://libra.org/en-US/
4. Alphabit.fund/investments/2/
Metal https://www.metalpay.com/
Cova https://covalent.ai/
Mycred https://mycred.io/lba/
Tap https://www.tap.global/
5. Panteracapital.com/portfolio
RIPIO https://www.ripio.com/en/
RIPPLE https://ripple.com/
SHAPESHIFT https://classic.shapeshift.com/#/coins
XAPO https://xapo.com/en
ZCASH https://z.cash/
KORBIT https://www.korbit.co.kr/
BAKKT https://www.bakkt.com/
BLOCKFOLIO https://blockfolio.com/
BRAVE https://brave.com/
CIVIC https://www.civic.com/
BLOOM https://bloom.co/
BGOGO https://bgogo.com/
ZRX https://0x.org/
CODEXPROTOCOL https://www.codexprotocol.com/
CELER https://www.celer.network/
ENIGMA https://www.enigma.co/
DOC https://doc.ai/
FILACOIN https://filecoin.io/
FUNFAIR https://funfair.io/
EXPAND https://expand.org/
GIFTO https://gifto.io/
DIRTPROTOCOL https://dirtprotocol.com/
ICON https://icon.foundation/?lang=en
KIK https://www.kik.com/kin/
KYBER https://kyber.network/
OASIS https://www.oasislabs.com/
OMISEGO https://omisego.co/
ORIGIN https://www.originprotocol.com/en
POLKADOT https://polkadot.network/
TRUEFLIP https://trueflip.io/
WAX https://wax.io/
6. Crypto20
You can also see information in the following directories:
Cryptofundresearch
Neironix
As a result, we can conclude: that almost all funds invested in the following projects:
BRAVE https://brave.com/
CIVIC https://www.civic.com/
COINBASE https://www.coinbase.com/
RIPPLE https://ripple.com/
SHAPESHIFT https://shapeshift.io/
XAPO https://xapo.com/en
ZCASH https://z.cash/
Filecoin https://filecoin.io/
6. Placing orders for the purchase of cryptocurrency with a price 5—10 times lower than the market, or placing orders for the sale of cryptocurrency with a price 5—10 times above than the market. It is worth considering which cryptocurrency pairs are traded on the exchange, since these buy orders are best placed with respect to top coins or stable coins.
7. Investing in coins or tokens that have attracted large companies to cooperate, such as gaming platforms, Microsoft, and others.
As an example:
Mobilego
Traded in many liquid markets.
MGO has probably made the largest gaming partnership with Xsolla. The gaming industry is developing very fast. Capitalization reaches more than $ 100 billion, so this is a very promising industry, in which a huge number of people from developers to gamers participate. Xsolla now accepts MGO payments, which means instant access to over 500 games for MGO tokens. Most likely, Blockchain will mark the beginning of the next gaming revolution. Today, most games use in-game currency to purchase various artifacts, improve characters, and acquire skills. The introduction of cryptocurrency will allow you to conduct cash transactions faster and more reliable.
https://coinmarketcap.com/currencies/mobilego/
Mobilego.io
Reddcoin
Now is the era of social networks, almost everyone who has a mobile phone or laptop is registered in a particular social network, so this is a very promising industry that is constantly growing and developing. 2014 Reddcoin plans to create the first blockchain platform that will use personalized identifiers for distribution on social networks.
It has a good subscriber base and activity in social networks.
https://coinmarketcap.com/currencies/reddcoin/
Reddcoin.com
Stratis
Stratis offers Blockchain as a service to help you avoid the cost and complexity of purchasing and managing your own physical complete nodes. Ready-to-run virtual machines for the full Stratis site are available on Microsoft’s proven Azure cloud platform.
Has a good trading volume.
Transactions on many liquid exchanges.
Partnership with Microsoft, which has a strong influence on the further development of this project in my opinion. Really large partnerships with companies operating in the market can boast of very few cryptocurrency projects.
Project rating 9/10 according to binance.info
https://info.binance.com/en/rate/detail/2826
https://coinmarketcap.com/currencies/stratis/
FANTOM
The FANTOM DAG platform has the unique opportunity to become the basis of IT infrastructure for smart cities with the ability to collect a large amount of high-speed data transfer with scalable solutions from several smart city service providers. The IoT market has great potential for growth. Hundreds of options for using IoT devices can radically change our lifestyle and workplace. Market experts concluded that the IoT market is growing at an impressive pace; the expected IoT market size in 2021 will be from 678 to 1.1 trillion dollars.
Has a good trading volume.
Transactions on many liquid exchanges.
Partners have investment funds, so the project is of interest to investors and must undergo a serious assessment and analysis before investing.
https://coinmarketcap.com/currencies/fantom/
https://fantom.foundation/
8. Trading through projects that provide access to several exchanges with the possibility of simultaneously placing Stop loss and take profit orders.
Crypto traders who diversify get more profit:
Conclusions:
1. The average cost of a portfolio, as a rule, grew with an increase in the number of cryptocurrencies,
2. Portfolios with fewer assets tend to benefit more from adding additional assets than portfolios with more assets.
3. The rebalancing strategy for 1 hour had a significantly higher yield than other periods.
MARGIN TRADING
The entire history of the existence of cryptocurrencies is inextricably linked with various types of speculation. Previously, their main part concerned participation in direct transactions on the purchase / sale of coins actually available to users through exchangers and cryptocurrency exchange exchanges.
However, in recent years, margin trading of cryptocurrencies has become a particularly popular branch of crypto trading, which is increasingly attracting newcomers to the opportunity to get fast super profits. Moreover, not all of them are aware of the attendant financial risks. And they, of course, are.
Therefore, before taking the first steps in margin trading in cryptocurrency, it is recommended to pay attention to studying the basics and features of this type of trading.
The definition of “margin trading” refers to a type of speculation in the stock or cryptocurrency market, which consists in the use by a trader in his activities of borrowed funds provided by the exchange.
As in any other situation with obtaining credit loans, the user must provide a security deposit – in this case, deposit an amount guaranteeing payment of debt obligations according to the rules established by the platform. Own funds allocated for opening such a transaction is a margin (hence the name of this type of speculation).
You can also come across the term “leverage trading”, which is an alternative designation for this type of trading due to the presence of leverage – a multiplier (1–100x), which increases the user’s deposit available for the transaction at the expense of borrowed funds. Due to this feature, the user can make a profit many times greater than that which would have been present during the speculation exclusively by their own means.
For example, if you deposit $ 1000 into a stock exchange offering this service and open a long bitcoin position with a leverage of 10x (1:10), the amount of the open position will be $ 10,000 (the amount available to the trader has increased tenfold). If the price increases by 1%, the user’s profit will be calculated from the total transaction amount, i.e. will be $ 100. In total, when a position is closed at this moment, the trader’s balance will be $ 1,100 (minus the site commissions and other payments defined by its rules). If there was no leverage, the profit would be only $ 10.
An important point in margin trading is that a liquidation price is set for any transaction – a price calculated by the exchange, upon reaching which the position will be automatically closed with a complete withdrawal of the margin that provides it from the user’s balance.
That is, as in the example described above, if a long deal was opened at a bitcoin price of $ 10,000 and the liquidation price was set at $ 9,500, a fall in the rate to this mark would lead to a loss of $ 1,000 contributed by the trader.
It is also worth paying attention to the fact that in the cryptocurrency margin trading there are two main types of orders:
1. Perpetual contracts, when the position is open until the user closes it or liquidation occurs;
2. Futures contracts that close automatically when they expire.
What should always be remembered in margin trading?
1. Margin trading in cryptocurrency is a type of taking a loan, which will have to be repaid, at least with the payment of established commissions, and at most with the loss of the body of the deposit. Thus, you can keep yourself from taking rash actions in the form of taking too much leverage or using the entire deposit to trade;
2. Unreasonable opening of transactions with leverage by the user without a serious level of trading skills is likely to lead to a loss of deposit;
3. The choice of a cryptocurrency asset for margin trading should be done based on an analysis of its volatility. To open a transaction, it is recommended to choose periods when the probability of occurrence of volatility is minimal – sharp price jumps in different directions, with the help of which the market maker tries to get as many traders out of positions as possible. Ideal options are trading with the shoulder of pairs of altcoins to bitcoin, on the charts of which predictable repeated fractals are traced;
4. A failed transaction can be completed independently, without waiting for the moment of liquidation. At the same time, instead of the entire position, only part of the margin from the user’s balance is lost (professionals try not to allow more than 20% loss). This can be done not only manually, but also with the help of the “stop loss” setting (English stop loss – stop loss), which is a type of order to limit trading risks, which implies automatic closing of a transaction when a certain price level is reached;
5. An open position that will soon be liquidated can always be averaged by purchasing additional contracts and thus save it from closing. However, many professionals believe that this is the way to drain the deposit.
Most importantly, you must remember that leverage works both ways.
If you are promised superprofit – this does not mean that you will receive it.
Do not confuse luck that smiled at you with skill.
If you are just buying cryptocurrency, you can just wait if the rate has gone down to any mark. Until you sell the asset, you have not recorded a loss. That is, you bought BTC for $ 9,500, then the rate fell to $ 100, and then rose to $ 10,000. You made a profit of $ 500. This cannot be the case with leverage.
The exchange will not let you go negative in relation to your debts.
If you choose a leverage of 1:100 and trade your entire deposit, then it is enough that if the cryptocurrency rate went the other way by 1%, the deposit is lost.
CRYPTOCURRENCY TRADING SIGNALS
Thousands of digital currencies are traded on the market. Estimates of various instruments by experts may vary diametrically. Making decisions in such circumstances can be extremely difficult. For “profitable” trading, more and more inexperienced traders use trading signals.
Identifying them yourself can be very difficult. However, you can use the help of other market participants. There are entire portals about digital coins. Their task (ideally) is to help less informed traders and newcomers to the market.
Cryptocurrency signals published on Telegram channels are very different. Some sites report entry points in short positions, others – long. You also need to consider that there are channels that disseminate information, both on a paid and free basis.
The main thing that you should understand is that:
1. The digital coin market is the most volatile and unstable. Therefore, cryptocurrency trading signals are not a panacea.
2. High-quality trading signals are rarely shared for free. Since their formation takes a lot of time and effort. Free crypto signals are not always accurate, and it’s unlikely to make good money only on them.
3. It is in principle impossible to accurately predict the behavior of some instruments. Also, no source will give you one hundred percent guarantee that their signals will be correct. Always keep this in mind when making decisions.
4. First, make sure that the source of the trading signals is trustworthy. Only after that, you can use the information received from him to complete transactions on the cryptocurrency exchange.
5. Not every paid resource does high-quality analytics. The Internet is full of fraudulent sites trying to make money on gullible beginners. For example, a user who enters a channel sees a series of deals and tips that worked without loss or profit. Because of this, he may have unreasonable trust in the owners of the group. To achieve this effect, the administrators of some channels give several signals to buy or sell coins. Successfully fulfilled recommendations are duplicated with a commentary, conditionally, “profit is fixed!” Tips with a negative result may be removed from the story. Another way to attract customers is to send to the main channel messages about a successful transaction proposed in a closed paid group. In this case, the only opportunity for users to find out about unsuccessful recommendations of traders is to buy a subscription and see for yourself. Using these methods, certain channels form imaginary positive statistics, earning the trust of the audience. Subsequently, her loyalty and desire for quick money can become a tool for manipulation and deception.
6. Signals can simply be copied from random free channels, if it’s more important for the group owner to earn money from selling subscriptions.
7. Another way to make money on the audience is trust management. This works as follows: the channel administrator takes control of a certain amount in cryptocurrency, with the condition that he will trade it, and leave a fixed percentage of the profit to himself. An unscrupulous trader divides the received coins into two halves. Each of them is used to open both long and short positions. Therefore, no matter what happens with the asset rate, one of the transactions will be profitable. The attacker will receive his percentage, but someone will be left without his money.
8. Some channels may have pumps. Subscribers are invited to buy a certain coin, the name of which is revealed at the last moment, seconds before the start of the action. As soon as this happens, the participants of the “pump” massively acquire altcoin in the hope of an instant growth of its course. An asset can go up in price, but organizers mostly make money on it, while cryptocurrency with a dubious future remains in the hands of subscribers. In other words, channel administrators who want to make money on their subscribers buy an illiquid coin, artificially inflate its rate, and after a while organize a “pump” to get rid of it. If the price of cryptocurrency takes off seriously, the attackers benefit from this twice: they earned money on the audience and got a plus on the statistics.
Use all sources:
• Closed groups on social networks. In such groups, they can share various insider information and analytical data.
• Professional resources. On such resources you can always find fresh market reviews and analytics for various cryptocurrencies.
• Special bots and robots. They are universal. They can collect information from several sources simultaneously.
• Forums of traders. On them, experienced players share with each other their opinions on the current situation in the cryptocurrency market.
Benefits:
1. Significantly reduce risks. The most important aspect of applying trading signals. With their help, you can protect yourself from entering the market in an unfavorable period. Thus, your losses are reduced, and profit is growing. At least you can see the trend existing in the market, thereby making an analysis for the point of entry into the position.
2. Automate trading. Cryptocurrency trading signals save a trader from performing routine work. It is enough to follow them, to receive well-deserved profits.
3. Act without emotion. Many traders incur losses due to transactions under the influence of psychological factors. The use of crypto signals allows you to make decisions based on clear criteria, and not under the influence of emotions.
Examples:
Free:
GodCrypt
Coins highlow pulse
Also see ideas on tradingview.com:
Ru.tradingview.com/markets/cryptocurrencies/ideas/
Ru.tradingview.com/crypto-screener/. I really liked this resource
Paid:
Crypto-raiders
CRYPTOCURRENCY ARBITRAGE
The essence of cryptocurrency arbitrage is that you buy coins at a low price on one exchange and sell them a little more expensive on another exchange, that is, trade in spreads.
As you already understood, it is necessary to find a stock exchange offering the lowest price of cryptocurrency, and a stock exchange with a high price for a similar coin. The CoinMarketCap site will help you with this. Select the cryptocurrency you are interested in and open the Markets tab. Here are all the exchanges that trade this coin. As you can see, the prices for the same cryptocurrency are different. You must select the exchange with the lowest and highest price. But you need to choose only among exchanges with a high share of the market – from the TOP 50. The difference between prices should be at least 1%, only in this case you can apply the arbitration strategy of multicurrency currencies.
Disadvantages of cryptocurrency arbitrage:
1. Exchange between exchanges is very slow, sometimes it takes more than an hour, and during this time prices can already change against you, and this is not to mention the commissions that exchanges take for trading operations.
2. Arbitration of cryptocurrencies requires impressive capital. Not every trader has more than $ 1000 in his pocket. In addition, if you want to consistently make money on arbitration, you will need even more money.
3. Searching for exchanges for arbitration takes a lot of time. It will take a long time to find exchanges for arbitration, as the rates are constantly changing. For this, it is better to use automatic bots, but keep in mind that now there are a lot of scammers on the Internet trying to sell non-working bots. It’s better to write such a bot yourself or ask a professional programmer about it. The bot will search for profitable courses on various exchanges, as well as buy and sell cryptocurrencies, you only need to make sure that there are always funds in your wallets.
4. You need to consider hidden fees. It must always be remembered that exchanges charge fees for trading, money transfers and exchanges. All fees for input / output must be considered. The most expensive payments are for processing fiat transfers.
5. On a small exchange, there may not be enough volumes for a quick sale or purchase of cryptocurrency. With small capitalization and trading volumes, there are two traps:
• a sharp adverse change in quotations;
• inability to sell the asset, as there are no sellers / buyers.
Most importantly, there should be a high turnover on the cryptocurrency exchange. There is no value in a supposedly profitable quote if the application will hang for hours in an exchange glass.
Examples:
1. You buy and sell on one exchange
Buy 5 ETH for $1000
Exchange for 10000 TRX
TRX for $1020.
2. You buy and sell on different exchanges
Buy 10ETH for $2000
Transfer ETH to the second exchange
Sell ETH to the second exchange and get $2050
3. The option is suitable for those traders who have several cryptocurrency deposits on different exchanges:
You have the same number of two different cryptocurrencies on two exchanges:
On deposit No. 1 we have 500 BCH and 1 BTC.
Deposit No. 2 has a similar amount.
On the first exchange we buy 500 BCH, selling 1 BTC
On the second, we sell 500 BCH, and we get 1.1 BTC.
4. Use of trading bots for arbitration. The script is configured to track prices, place an order, transfer coins to an address on another exchange and sell them there.
5. A deficit of cryptocurrency on one platform and a sufficient amount on another. At the time of growth of a certain currency due to limited offers from users, the rate rose to 5 USD, whereas at larger sites it was 2.5 USD.
6. Pump tokens, you are looking for tokens with sharp price fluctuations. Carefully look at what exchanges are traded and with what volume of trades.
ALGORITHMIC TRADING SYSTEMS
Algorithmic trading systems – in fact, this is a program that replaces a person – a trader. She, according to a certain algorithm with a certain strategy, opens and closes transactions on the exchange. Instead of manually entering each transaction into the exchange, the trading bot can access the data from the user’s exchange account and automatically place transactions. The process is controlled by computers, which provides a level of speed and accuracy that is impossible for people. The strategies that these bots implement are capable of anything: from trading to creating custom indexing strategies to advanced real-time arbitrage on exchanges. The possibilities are almost endless. Each trading bot usually implements a trading strategy based on algorithms created by the application developer.
Cryptocurrency trading bots work by gaining access to exchange data for the user. Each user can provide access to his account to the trading bot by providing him with an API public key and an API secret key (AKA secret key). These two pieces of information are used to inform the exchange that you have permission to access your exchange account.
APIs allow applications or services outside the exchange to access data or functions within the exchange. Using these APIs, trading robots can request the latest market data, place trades for the user or collect information about the amount of funds in the user’s account. Access to a user account is granted only when the user explicitly provides API keys for the application. Access can be revoked at any time by deleting the API keys on the exchange, providing a safe way to always control who or what can access your exchange account.
The main goal of trading bots is to automate actions that are too complex, time-consuming or difficult for people to perform manually. The complexity of these tasks ranges from the automation of one trading strategy for one trading pair to the intelligent routing of transactions between any assets for a diverse portfolio. Without constant efforts, some bots can allow users to implement a complete portfolio management strategy, saving a huge amount of time. Instead of requiring you to be constantly online to manually place trades and adjust your portfolio, bots can take control of your strategy.
The cryptocurrency space is flooded with countless trading bots. Some have a dubious reputation, lack a quality infrastructure, or simply do not work.
However, this is a very interesting and promising direction, the main feature is that by no means all algorithmic systems cope well with both up and down trading, therefore, very often when the market is bearish, these systems do not cope.
When choosing, you should pay attention to:
– how much the project is holding on the market,
– how many people use his services,
– are there names of leaders in social networks,
– how the user support system works (there is an active Telegram or Discord community where the team is online and answers questions. How many channels of communication with the team, the support service answers questions quickly and actually works to solve the problem).
– you also need to find a forum where this project of the algorithmic system is presented and read user reviews (it would be better if these were not fake accounts, but real users who could be asked a question.
– team reputation (In which companies the participants worked, how long the team has been working on the bot, source of funding for the startup, country of registration, technical capabilities of the founding team).
– Does the bot we are evaluating implement the strategy that we want to automate?
– cost – should be adequate.
Conclusion: in general, if you have a trading bot, setting that you will receive only profit – you will immediately sell it for a lot of money to a large company, or you will earn it yourself. OR NOT?
CRYPTOCURRENCY MANIPULATION
Major players:
1. Large HODL. They managed to purchase in the most embryonic state of the market at ridiculous prices. If one of these players “merges”, the market can seriously stagger.
2. Miners, mining pools or pool syndicates.
These guys built entire empires on cryptocurrency. They are not prone to speculative actions and, as a rule, their vital interest is that the price of the crypto continues its growth.
3. Large traders. Most people have little knowledge of all the intricacies of exchange business and prefer to entrust their funds to more experienced and successful traders in the cryptocurrency market. As a result, large, active players with serious funds appear on the site, which are capable of moving the market in the moment.
4. Cryptocurrency exchanges. Since the cryptocurrency market is unregulated, hands are untied at cryptocurrency exchanges.
5. Large investors. It is these types of players that are one of the most dangerous in my opinion, since they can radically affect all market participants, including the previous four.
6. Well, we are with you, with $10 in your pocket.
Let’s dwell on the manipulations:
1. Large players usually always take profit positions in the region of 30 – 40% when trading top violas.
2. The market price of any altcoin almost certainly already includes the games of major players, that is, most likely all the news that will be released later are already included in the price.
3. When placing orders, never sell on the market, slippage is possible.
4. Wash trading – he placed an order himself, he closed it. As a result, volume is gained.
5. Market making – a new company pays to maintain the rate of its asset, which has just been put on the stock exchange.
6. Investors or speculators who made the PUMP altcoin, most likely will not return to it, but will switch to another alt.
7. OTC transactions that Coinmarketcap does not take into account – trade in cryptocurrency for millions of dollars.
8. Real trading does not go all over the circulating supply. That is, if you take BTC, then most likely the trade is 1 – 2 million on all exchanges, therefore, given the fact that many exchanges provide access to trade with leverage – the rate is very manipulative.
9. It is better if you enter a trend – any (in a bear or bull market), and not day trading.
10. If you do not have time to enter the position on the altcoin – everything is OK, come back later, since you can only control your entry and exit points.
11. Exchange wallet – your unrealized profit, only transfer to personal wallets.
12. Layering – traders start buying from a large order, while Layer cancels the order and plays short, or puts on a purchase at a much lower price.
13. Level retention. The task is to suppress the bearish mood for corrective movements. Beginners see the beginning of the pattern, and pick up the upward movement. At this very moment, the whales begin to close the longs and go against the mass.
This tactic is used to draw patterns / to accumulate “mass” / to create resistance and support levels.
14. Another manipulation is when a very large order is placed so that it is visible to those who are at the “front line”, but at the same time, at a fairly strong distance.
This order greatly increases the volume of bid (bid), which affects the general mood of the market, showing a bullish mood.
If the desired effect is produced, the market goes up until the time comes to merge at the price that the manipulator determined in advance for itself.
In the event that the market has become stubborn, then the manipulator can remove the order at the touch of a button, thereby releasing the market into free fall. At this moment, an especially insidious whale unfolds 180 degrees and puts the same plate, only for sale, thereby pushing the market into the abyss, in which it will already buy the market for a penny.
15. Drain.
Check for “lice” – as a rule, such a drain occurs after a queue of pumps in a very hot market.
Firstly, this allows the whale to replenish resources for the new pump and partially take profit.
Secondly, this is a test for the stability of an artificially created trend.
Trend reversal – this drain is much less common, and is needed in order to expand the market at the required point.
As a rule, this is done to create a resistance point in the right place or to form the necessary pattern.
“Inflating” the trend
This is a manipulation that is inverse in meaning to the previous type and is aimed at additional pressure on the market during the corrective movement, neutralizing all attempts to rollback.
This drain is insidious in that the manipulator can feed the bears with small volumes.
16. This is a huge, one-time execution order at a price that is obviously worse than the market.
As a result, this money supply rakes all small orders in the right direction and removes all the “stops” of infrequent traders.
17. Volume cheating is another manipulation that can often be found on the market.
Surely many of you have already encountered such a phenomenon when an order for a significant amount goes either to sell or to buy, is constantly redeemed and sold, but what is the meaning of these actions the first time is difficult to understand.
If you dig deeper into the calculation formulas of popular indicators, the answer pops up.
All take into account several or all 5 variables, such as:
– period opening price
– period closing price
– price of the maximum for the period
– price of a minimum for the period
– volume for the period
By placing orders and redeeming from oneself, the manipulator affects all five indicators:
– it abnormally greatly increases the trading volume
– it does not allow the price to move
In any case, the point is that a certain key point is formed on the chart, which is the key to the local trend reversal.
A huge volume will certainly show high market interest at this level and draw on oscillators that take into account trading volumes and volatility – divergences, and, therefore, show a reversal signal.
18. Shaking is also one of the common tactics to remove unnecessary “passengers” from the train before moving in the right direction. The market moves in a rather narrow corridor.
Following the rules of classical technical analysis, we are waiting for breaking through, in order to determine the direction of movement and enter during a rollback.
At the beginning, we see that the breakdown went up, and after waiting for a pullback to the upper border of the channel, we begin to enter a long one, however, instead of continuing to grow, it falls down closing our stop deals.
19. And of course, it is necessary to take into account the fact that now a huge number of robots are trading on exchanges.
CONCLUSION
In the book I emphasize that there are a large number of types of investments in cryptocurrency. Each person can choose the one that suits him, based on the size of his capital and the strategy that he adheres to.
The cryptocurrency market is the most volatile, so make a decision based on your investment principles, and not on the advice of pseudo-investors or journalists who may have ulterior motives or be incompetent in their assessments of a particular project.
Any investments ALWAYS carry risks, therefore, when deciding, ALWAYS rely on your Money Management and the risk you can take!
Best regards, D.O. Arsentiev
For the cover design, photographs from the site https://www.pexels.com/ were used by the following authors Moose Photos under the CC0 license.
